"Hungary’s forint is slowly regaining massive losses suffered since late Monday, as it has firmed back to around 276 versus the euro by Wednesday morning. Global players appear to be switched to a wait-and-see mode, with stock markets only ambling around.EUR/HUF kicked off Wednesday’s session at around 276, with the forint stabilised after a dramatic plummet late on Monday. The HUF’s peers in CEE moved on a similar path.
The US dollar appreciated markedly on Tuesday, and EUR/USD firmed to below 1.4650. This time, however, the strengthening of the greenback has not made an impact on the forint and EUR/HUF remained steady in a tight range between 278 and 280. On the other hand, the USD has moderately eased to the EUR since midday yesterday as global sentiment lightened up, from which the HUF could have also benefited.
US macro data in the pipeline for the afternoon (ADP employment report, ISM index for October) are prone to stir markets, but what investors are really focusing on right now is the Federal Reserve’s rate decision in the evening."
Source: Portfolio Online Financial Journal
04.11.2009